It looks as though not quite all the mergers are dead on the medical tech and biotechnology front. Johnson & Johnson (NYSE: JNJ) announced that it is acquiring Omrix Biopharmaceuticals, Inc. (NASDAQ: OMRI). The $438 million cash tender offer will pay $25.00 per share to Omrix holders.
Omrix is a fully integrated biopharmaceutical company that develops andmarkets biosurgical and immunotherapy products. It is expected tooperate as a stand-alone entity reporting through J&J’s ETHICON,Inc. unit, which is a provider of suture, mesh, hemostats and otherproducts for a wide range of surgical procedures.
The boards of directors of Johnson & Johnson and Omrix haveapproved the transaction. In addition, Robert Taub, Omrix’s Founder andChief Executive Officer, and entities controlled by Robert Taub, haveagreed to tender approximately 16% of Omrix’s outstanding shares in thetender offer. J&J sees an after tax charge of roughly $120 millionand expects this deal to close by the end of 2008.
Omrix closed at $21.16 on Friday, and its 52-week trading range is $8.99 to $38.18.
Jon C. Ogg
November 24, 2008